Question

What does the Law of Variable Proportions explains. Use a hypothetical example to make it understandable. ​

Answer 1

Answer:

The law states that keeping other factors constant, when you increase the variable factor, then the total product initially increases at an increases rate, then increases at a diminishing rate, and eventually starts declining.

Explanation:

Therefore, when the number of one factor is increased or decreased, while other factors are constant, the proportion between the factors is altered. For instance, there are two factors of production viz., land and labour. Land is a fixed factor whereas labour is a variable factor.